Trump Media Reports $55 Million Q3 Loss Despite Bitcoin Accumulation Strategy

Trump Media and Technology Group reported a net loss of $54.8 million in the third quarter, up from $19.3 million the same time last year.

The company operates the Truth Social social media platform and saw revenues decline to $972,900 from over $1 million a year ago.

Shares ended trading down 1.73% at $13.10 and rose slightly after hours to $13.20.

Crypto Holdings and Strategy

Trump Media held 11,542 Bitcoin as of September 30.

The company first began buying Bitcoin in late July and has indicated plans to acquire more, alongside exploring other cryptocurrencies.

Bitcoin holdings generated $15.3 million of realised income from options investments.

Additionally, the company posted $33 million in unrealised gains from holding Cronos tokens.

The company said it acquired Bitcoin as part of an investment strategy launched in May after raising $1.5 billion from stock sales and $1 billion from bonds.

Expansion and Treasury Moves

CEO Devin Nunes stated the quarter was crucial to Trump Media’s expansion plans.

He said the company has “secured our financial future with a massive Bitcoin treasury, and expanded our existing platforms.”

The company also formed Trump Media Group CRO Strategy, a digital asset treasury company aimed at buying up to $1 billion in Cronos tokens, representing over 6.3 trillion units.

“With these financial assets now earning income, alongside our second consecutive quarter of positive operating cash flow, we’re well-poised to act on our mergers and acquisitions strategy,” Nunes said.

Financial Assets and Stock Challenges

Trump Media’s financial assets grew from $274 million in March 2024 to $3.1 billion as of September 30.

Despite this, the company’s stock has struggled, losing 61% year-to-date.

The large cryptocurrency holdings have provided income, but the operating business continues to face pressure.